Key Takeaways 

• The Secretary of the Treasury has issued a final determination exempting both foreign exchange swaps and foreign exchange forwards from the definition of "swap" under the Commodity Exchange Act (the "CEA"). Other currency derivatives, including non-delivery forwards, are not covered by this exemption. 
• Notwithstanding the final determination, foreign exchange swaps and forwards will be subject to certain regulatory and historic reporting requirements under Section 4r of the CEA and any party to a foreign exchange swap or forward that is a swap dealer or major swap participant must comply with the business conduct standards contained in Section 4s(h) of the CEA. 
• The final determination does not exempt foreign exchange swaps and forwards traded on a designated contract market or a swap execution facility from any applicable anti-manipulating provision of the CEA.